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{
    "localId": "1554455",
    "label": "Puerto Rico - Compact of Permanent Union, October 1975",
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    "id": "1554455",
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    "contentType": "document",
    "title": "Puerto Rico - Compact of Permanent Union, October 1975",
    "description": "This file contains a published report of the Ad hoc Advisory Group on Puerto Rico.",
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        "White House Special Files Unit Files",
        "Issue Decision Papers for the President"
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        "Intergovernmental relations",
        "Territories and possessions"
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{
    "seq": 32,
    "pageIndex": 0,
    "type": "photo",
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    "ocrText": "Puerto Rico from the onus of what is bound to seem an unfair priv-\nas it has been developed, is inescapably necessary to the same end.\nilege when genuinely needed Federal grants are made to their de-\nWithout the Commonwealth, Puerto Rico would be torn by a\nvelopment and social justice? And how to serve both these desir-\ndestructive division between two economically and perhaps\nable ends while not substantially inhibiting Puerto Rico's continued\notherwise unworkable concepts, respectable elsewhere, tragic in\nprogress? The matter has been referred, as a first priority\nPuerto Rico-a semi-peaceful, semi-violent civil strife between two\nmandate, to the Permanent Joint Commission provided in the\nemotionally charged unrealities with no third solution in view.\nCompact. Doubtless there are several ways of responding to this\nThis is the merit, the deep merit, of the Commonwealth idea.\nsomewhat complex challenge. One way could be the following:\nThere are a number of shortcomings that the Ad Hoc Com-\nEstablish a Special Fund under the custody of the Joint\nmittee has attempted to correct in the proposed new Compact.\nCommission. Determine a formula to feed this Fund by a\nThere are a number of others that must await the future.\npercentage of the annual increase in the net income of\nOne basic reason for this awaiting of the future for other\nPuerto Rico (whenever such increases occur, which would\ncorrections may well lie in the fact that a method or procedure has\nbe in all normal years) in such proportion as not to inhibit\nnot been devised and initiated for a developing contribution by\nsubstantially economic growth. The Legislature of Puerto\nPuerto Rico to the general financial burden of the Union. Since\nRico would determine the sources of such payments into\nresidents of Puerto Rico pay no taxes, except marginally, into the\nthe Fund in the exercise of its fiscal autonomy. As the\nFederal general fund, this is a lack that must be corrected. I have\nFund increases, along with the economic growth of Puerto\nbeen reminding my people since the founding of the Common-\nRico, Federal appropriations for social and other public\nwealth that this fact must at some time be faced. I had thought\nservices in Puerto Rico would be matched in increasing\nthat the new Compact would give the opportunity for instru-\nproportion from the Special Fund. Puerto Rico's gross\nmenting this by an agreed-to formula for initiating and increasing\nincome in constant dollars has increased by 300 per cent in\npayments from Puerto Rico to the United States through appro-\nthe last 23 years under the Commonwealth while its popu-\npriations by the Legislature of Puerto Rico in the exercise of its\nlation has increased by only 30 per cent, ten times less. It\ntraditional and well-rooted fiscal autonomy. I regret that the\nseems probable that even a slower rate of growth during\nUnited States side of the Ad Hoc Committee expressed doubts\nthe remainder of the century would multiply the net\nabout the general proposal. I appreciate the nature of those\nincome to at least triple the present $7 billion recession\ndoubts: the United States taxes citizens, it does not exact tribute\nyear income. Puerto Rico's contribution through the Fund\nfrom bodies-politic. But if it taxed Puerto Ricans in Puerto Rico\nto Federal grants to Puerto Rico could approach, equal, or\nwithout voting representation in the tax-legislating body, it would\neven surpass the appropriations for such grants with justice\nnot only be violating a basic principle of the American Revolution,\nto the Federal Union and full pride and dignity as well as\nbut would be destroying Puerto Rico's fiscal autonomy, without\njustice for the people of Puerto Rico. It is not contrary to\nwhich progress already achieved would not have happened, could\ndignity for the citizens in Puerto Rico to receive all avail-\nnow be destroyed, and future development would be tragically\nable and needed aid. It would be, however, contrary to our\nthwarted.\ndignity to contemplate receiving such aid ad perpetuam\nHow to respond to the challenge of achieving both ends: pre-\nwithout contributing to the general burden when we could\nserving time-honored fiscal autonomy and establishing and in-\nand as we could, in a manner compatible with Puerto\ncreasing Puerto Rico's contributions to the Union? How to\nRico's essential fiscal autonomy.\ncontinue to honor the principle of no taxation without repre-\nsentation while relieving the United States taxpayer increasingly\nThe question may be asked: Why not, at that time, state-\nfrom a burden, and the self-respect and dignity of the people of\nhood? Why not, at that time, independence? (It is a small minor-\n55\n54"
}